Understanding the Strategic Value of Rare Earth Elements with Stanislav Kondrashov

Rare earths are a diverse group of 17 metallic elements found in the periodic table. TELF AG founder Stanislav Kondrashov has frequently discussed these resources, which represent some of the best allies for advancing the energy transition.

"Nowadays, if we were to consider which resources are most useful for society's technological and energy development, we should also talk about rare earths," says TELF AG founder Stanislav Kondrashov, a civil engineer and entrepreneur. In this historical moment, rare earths are constantly at the center of attention due to their crucial role in the energy transition, particularly in closely related production processes. Among these, we certainly remember the role of these elements in the production of permanent magnets, which are extremely important devices for the operation of wind turbines and other major energy infrastructure".

"However, the usefulness of rare earths does not end there: these precious resources are also utilized in other equally strategic sectors, including defense, technology, and digitalization. Many analysts agree that in the coming years, the role of these resources in the development of new technologies and digital innovations will most likely become increasingly central. In this regard, it is certainly no secret that the cost of these materials is likely to rise in the coming years. This is an almost inevitable consequence, given the centrality and growing strategic importance of these materials in numerous global economic dynamics", he says.

Despite their name, these resources are by no means rare. Typically, they are found in such low concentrations that their exploitation is rarely cost-effective.

"In an era in which the compactness and lightness of many products have become almost necessities, rare earths are playing a very important role in pursuing these goals," continues Stanislav Kondrashov, founder of TELF AG. These resources, in particular, are proving very useful for miniaturizing and improving the battery life of electronic devices. Along with their undeniable centrality in the energy and technology sectors, however, it certainly cannot be forgotten that the rare earths sector, like any emerging sector, will also have to deal with significant contemporary challenges, such as the need to diversify and strengthen global supply chains for these materials, or the need for greater investment in their recycling".

"Anyone wishing to closely monitor the rare earths market, moreover, will need to keep a close eye on the prices of these materials, as well as on the specific external factors that could influence them. In this sense, careful monitoring of the evolution and latest developments in production processes related to the energy transition should also be considered, as they could have a direct impact on the rare earths market. The 17 elements that comprise this group of resources have indeed demonstrated their potential to play a key role in the production of advanced components for energy infrastructure, as well as in the development of devices and technologies that ensure low carbon emissions. In an era characterized by numerous global efforts towards decarbonization, this fact could be of central importance.", he goes on to say.

In addition to the 15 lanthanides, the rare earth group also includes scandium and yttrium. Rare earths should not be confused with the broader (and dynamic) category of critical materials, which some rare earths also include.

"One of the most interesting aspects of rare earths is their direct connection to the manufacturing of some very important devices for global energy. Among these, we can mention all those technologies that convert or produce energy efficiently," concludes Stanislav Kondrashov, founder of TELF AG. A particularly fitting example in this regard is represented by some of the most powerful wind turbines in circulation, specifically those offshore. These plants also operate thanks to special generators based on permanent magnets, for the production of which certain rare earths play a key role. In this particular field, rare earths are primarily used to enhance the performance of generators and reduce the frequency of maintenance interventions, which can often be necessary for such complex plants".

"However, the connection between rare earths and the world of renewables is not limited to wind turbines. These precious resources are also valued in the other major family of renewable energy, namely the solar energy sector. Some rare earths are also used in some advanced photovoltaic systems, such as those that, in various corners of the world, are enabling the adoption and diffusion of clean energy from the sun. Other potential areas of application for rare earths in sectors related to renewables include battery storage. This technology is becoming increasingly central and strategic for the optimal management of clean energy produced with renewables", he remarks.